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The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance. Administrative expenses Fixed Cost per Month Revenue Instructor wages Classroom supplies Utilities $ 1,230 $ 4,600 $ 2,400 $ 3,700 Campus rent Insurance Administrative expenses $ 41 $5 For example, administrative expenses should be $3,700 per month plus $41 per course plus $5 per student. The company's sales should average $890 per student. The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below: Actual $ 53,170 $ 10,920 $ 19,380 Cost per Course $ 2,910 $ 75 $ 1,940 $ 4,600 Cost per Student $ 310 $ 2,540 $ 3,605 Required: 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September.

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance. Administrative expenses Fixed Cost per Month Revenue Instructor wages Classroom supplies Utilities $ 1,230 $ 4,600 $ 2,400 $ 3,700 Campus rent Insurance Administrative expenses $ 41 $5 For example, administrative expenses should be $3,700 per month plus $41 per course plus $5 per student. The company's sales should average $890 per student. The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below: Actual $ 53,170 $ 10,920 $ 19,380 Cost per Course $ 2,910 $ 75 $ 1,940 $ 4,600 Cost per Student $ 310 $ 2,540 $ 3,605 Required: 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities. Campus rent Insurance. Administrative expenses Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $5 For example, administrative expenses should be $3,700 per month plus $41 per course plus $5 per student. The company's sales should average $890 per student. Required 1 The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below: Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance. Required: 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September. Complete this question by entering your answers in the tabs below. Administrative expenses Total expense Net operating income Fixed Cost per Month Prepare the company's planning budget for September. Gourmand Cooking School Planning Budget For the Month Ended September 30 $ 1,230 $4,600 $ 2,400 $ 3,700 Required 2 Required 3 Instructor wages Classroom supplies. Utilities Campus rent Insurance Administrative expenses Actual $ 53,170 $ 10,920 $ 19,380 $ 1,940 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance. Administrative expenses $4,600 $ 2,540 $ 3,605 S Required 1 Required 2 Cost per Course $ 2,910 $75 Revenue Expenses: 0 The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net onerating income. < Required 1 $41 Fixed Cost per Month Cost per Student $310 $ 1,230 $4,600 $ 2,400 $ 3,700 For example, administrative expenses should be $3,700 per month plus $41 per course plus $5 per student. The company's sales should average $890 per student. Actual $ 53,170 $ 10,920 $19,380 $ 1,940 $4,600 $ 2,540 $ 3,605 The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below: Gourmand Cooking School Flexible Budget For the Month Ended September 30 Required 3 Required: 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September. Required 2 > Cost per Cost per Course Student $ 2,910 $310 $75 Prepare the company's flexible budget for September. $ 41 Complete this question by entering your answers in the tabs below. $5
Transcribed Image Text:The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities. Campus rent Insurance. Administrative expenses Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $5 For example, administrative expenses should be $3,700 per month plus $41 per course plus $5 per student. The company's sales should average $890 per student. Required 1 The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below: Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance. Required: 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September. Complete this question by entering your answers in the tabs below. Administrative expenses Total expense Net operating income Fixed Cost per Month Prepare the company's planning budget for September. Gourmand Cooking School Planning Budget For the Month Ended September 30 $ 1,230 $4,600 $ 2,400 $ 3,700 Required 2 Required 3 Instructor wages Classroom supplies. Utilities Campus rent Insurance Administrative expenses Actual $ 53,170 $ 10,920 $ 19,380 $ 1,940 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance. Administrative expenses $4,600 $ 2,540 $ 3,605 S Required 1 Required 2 Cost per Course $ 2,910 $75 Revenue Expenses: 0 The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net onerating income. < Required 1 $41 Fixed Cost per Month Cost per Student $310 $ 1,230 $4,600 $ 2,400 $ 3,700 For example, administrative expenses should be $3,700 per month plus $41 per course plus $5 per student. The company's sales should average $890 per student. Actual $ 53,170 $ 10,920 $19,380 $ 1,940 $4,600 $ 2,540 $ 3,605 The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below: Gourmand Cooking School Flexible Budget For the Month Ended September 30 Required 3 Required: 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September. Required 2 > Cost per Cost per Course Student $ 2,910 $310 $75 Prepare the company's flexible budget for September. $ 41 Complete this question by entering your answers in the tabs below. $5
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses For example, administrative expenses should be $3,700 per month plus $41 per course plus $5 per student. The company's sales should average $890 per student. Courses Students The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below: Revenue Expenses: Fixed Cost per Month Instructor wages Classroom supplies $ 1,230 $4,600 $ 2,400 $ 3,700 Required 1 Required 2 Required 3 Utilities Campus rent Insurance Required: 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September. Administrative expenses Total expense Net operating income Actual $ 53,170 $ 10,920 $ 19,380 $ 1,940 $ 4,600 Complete this question by entering your answers in the tabs below. $ 2,540 $ 3,605 $ Calculate the revenue and spending variances for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) $ Cost per Course $ 2,910 Gourmand Cooking School Revenue and Spending Variances $ 75 For the Month Ended September 30 Actual Revenue and Spending Results Variances 4 55 $ 41 53,170 Cost per Student $310 10,920 19,380 1,940 4,600 2,540 3,605 42,985 10,185 $5 < Required 2 Flexible Budget Required 3 >
Transcribed Image Text:The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses For example, administrative expenses should be $3,700 per month plus $41 per course plus $5 per student. The company's sales should average $890 per student. Courses Students The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below: Revenue Expenses: Fixed Cost per Month Instructor wages Classroom supplies $ 1,230 $4,600 $ 2,400 $ 3,700 Required 1 Required 2 Required 3 Utilities Campus rent Insurance Required: 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September. Administrative expenses Total expense Net operating income Actual $ 53,170 $ 10,920 $ 19,380 $ 1,940 $ 4,600 Complete this question by entering your answers in the tabs below. $ 2,540 $ 3,605 $ Calculate the revenue and spending variances for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) $ Cost per Course $ 2,910 Gourmand Cooking School Revenue and Spending Variances $ 75 For the Month Ended September 30 Actual Revenue and Spending Results Variances 4 55 $ 41 53,170 Cost per Student $310 10,920 19,380 1,940 4,600 2,540 3,605 42,985 10,185 $5 < Required 2 Flexible Budget Required 3 >
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